The right way to get your merchandise on the Walmart Market
As the world's most successful retailer, it's only natural for Walmart to have expanded into the e-commerce space. The Walmart Marketplace is one of the fastest growing e-commerce stores. So if you are looking for an Amazon alternative it is a serious competitor.
But how can you get the most out of the Walmart Marketplace? First, let's take a look at how the platform works.
What is the Walmart Marketplace?
Walmart Marketplace is an e-commerce platform that allows third parties to sell their products to the Walmart customer base. Once you have registered as a seller and uploaded your listings, your items will appear in search results alongside Walmart products and other marketplace sellers.
You're probably wondering what Walmart makes of it, but it's actually pretty simple. It's about moving with the times.
Walmart launched the marketplace back in 2009 to attract online shoppers and grow its customer base. By welcoming third-party vendors, Walmart can offer its customers a wider and more diverse range of products so that they don't have to shop elsewhere.
Why should I sell on Walmart Marketplace?
The most obvious reason why you should join the marketplace is potential customer reach. With millions of people shopping on Walmart.com, there is already a huge customer base to draw from. If you haven't quite figured out your target customers yet, Walmart will do it for you.
However, this isn't the only plus for providers. Here are a few more key benefits to becoming a Walmart Marketplace seller:
- Walmart generates consistently high sales volumes.
- There is a lot of effort going on to attract millennials with improved delivery options, greater brand diversity, and better customer service. If you are targeting millennials this is the platform for you.
- There is so much autonomy. You set your prices and fulfill orders and build your own brand.
- If you are a Shopify provider, there is a very easy way to integrate your listings with the Walmart Marketplace platform.
Who shouldn't sell on the Walmart Marketplace?
There are many reasons to sign up for the platform. Even so, it's not for everyone and it all depends on Walmart's price guarantee.
Your product lists will appear next to the Walmart items, which means you may be competing for cheaper goods. Additionally, you cannot sell on the Walmart Marketplace if:
- They sell the products on other ecommerce platforms at lower prices.
- Customers can buy the same product on another website for less money.
My advice? Make sure you can meet Walmart's pricing requirements before signing up. Don't forget to consider shipping and other costs.
What products are allowed on the Walmart Marketplace?
There are over 35 product categories to choose from, including toys, games and electronics. So there's a good chance you can find a fit for yourself. Some items, such as perfumes and seasonal goods, require special approval before they can be sold. To do this, contact the seller.
Here are some items that you cannot sell in the marketplace.
- Event tickets
- Gambling products
- Any food that needs to be refrigerated, i.e. H. Not stable in storage
It is best to contact seller support if you are not sure which item to list.
How much does the Walmart Marketplace cost?
It's completely free to sign up for a simple seller account on the marketplace. Here is a breakdown of the information you will need.
- You don't pay anything to put products up for sale on the Walmart Marketplace.
- Once you sell something, you pay a referral fee for the item.
- You don't pay monthly or yearly subscriptions.
The referral fee is a percentage of the gross sales price and depends on which item you are selling and which category it is in. The referral fee starts at 6% and increases to around 20%.
Think of the transfer fee as a commission. You pay Walmart a commission to introduce you to potential customers and make a sale.
How much can I earn on the Walmart Marketplace?
That's the biggest question, isn't it? How much money can I make this way? It all depends on:
- Manage your business effectively
- Optimize your prices
First of all, you need to know how much other vendors charge for items like yours. In other words, do market research.
- Take a look at the competitor's stores.
- Research how much your items are selling in the marketplace and elsewhere.
If you list an item at the same price as another supplier, Walmart will automatically promote the first listed product. For example, if you and Supplier B both sell hair dryers for $ 40, but Supplier B listed the hair dryer in the week before you, it will appear in the item lists in front of you.
Would you like yours to be listed first? Drop your prices if you can and watch out for competitors to change their prices.
However, there is no point selling items at rock bottom prices if you are not making a profit. So you should determine your profit margin. Cost factor like:
- Transfer fee
- Return fees
- Your acquisition costs
- Any overheads, e.g. B. Electricity, labor costs and other dealer costs if applicable
Once you've identified your margins, it's time to set prices. We can't tell you how much to charge, but you should aim for the lowest possible price. If you can't "compete" with Walmart's low-priced structure, this may not be the platform for you.
There is good news, however. As of the second quarter of fiscal 2021, Walmart's online sales rose a record 97%, which means that this platform offers great potential for profit if used properly.
Let's see how to do that.
How do I sell on the Walmart Marketplace?
Onboarding on the Walmart Marketplace is relatively easy, but it's even easier once you know what steps to take.
1. Get a Walmart Marketplace account
First, you need a Walmart Marketplace account. Here's what you need to do to get started:
- A US business address and tax ID
- An integration strategy for uploading and managing your product catalog
- A company website
- An established sales story
Essentially, you need to show Walmart that you are a serious seller. You're someone who knows how to process and fulfill orders and you prioritize customer support.
The application takes about 10 to 15 minutes. However, the approval process can take a few weeks if not months.
2. Register your company on the Walmart Marketplace
Approved for sale? Now is the time to create your partner profile that will give customers an overview of your entire company and all of your policies.
First, click the link in the email you received from the Walmart Marketplace. You will be taken to a registration page for your account.
Once you've chosen a password and verified your company name and address, fill out a W-9 so Walmart can verify your identity. This is what the form looks like:
After completing the tax filing, choose how you would like to receive payment. You can choose between Payoneer and Hyperwallet. It is a good idea to create an account with one of these providers before starting the application.
Finally, you choose your shipping model, including the regions you ship to and the delivery options you want to be available.
Next, it's time to add some details. Add your:
- Shipping conditions
- Customer service and return policy
- Important contact information
Working through the partner profile shouldn't take long, and you don't have to wait for approval before moving on to the next phase.
3. Create Walmart Marketplace Listings
Once you have your affiliate profile filled out, it's time to publish some articles.
- Have your image source URLs ready before you begin.
- Select meta keywords to include in your offers.
- Make sure you have chosen an upload method. For many people, the "bulk upload" method is preferable because all you need to do is enter product details into a table. You don't need fancy technical skills.
The first step is to select the product category. Remember that there are multiple categories available. So choose the closest match. Here is an example of what the categories look like.
Then comes the tricky part: how do you highlight your offers? Well, it's all about optimization.
- Choose the right category.
- Make sure you upload at least four product images.
- Optimize Your Title With Keywords – Use My Free Tool Ubersuggest For Keyword Ideas.
- Add customer reviews if you have them.
- Choose a competitive price.
- If possible, offer expedited delivery. Customers usually want their items quickly.
Why is it so important to get listings noticed? Because the best deals win Walmart's coveted Buy Box.
Do you remember when we said that Walmart shows customers the earliest and cheapest item first? Well, customers don't "see" this article first. This is the default product that is automatically added to someone's shopping cart when they click "Add to Cart".
"In the shopping cart" is the "Buy Box" and as you can imagine, these are coveted properties on the marketplace!
4. Complete Walmart Marketplace orders
You have to follow some pretty strict compliance rules in order to keep your place on the platform.
- Always confirm a customer order within four hours of receiving it, even if you don't send it immediately. This is the key to great customer support.
- Customers can usually return any item purchased within 30 days. You can cut this down to 15 days for products like electronics, but it's okay to give customers more time to return items.
- You don't have to accept all returns, but your exceptions must be reasonable, such as: B. if the goods are dirty or removed from the original packaging.
- If you are at fault, e.g. B. If you send the wrong item to someone, you will pay the return fee. Otherwise the buyer pays.
You must always offer at least two shipping options:
- Free Shipping
- Standard shipping
You can also offer expedited delivery or next day delivery. However, these orders need to come in faster than the cheaper shipping options. Otherwise, you may need to refund shipping.
If possible, avoid late orders. Unhappy customers reflect poorly on your overall rating.
- Set realistic order closing times for different shipping options.
- Add a shipping policy to your profile so customers know what to expect.
5. Get paid by the Walmart Marketplace
The payment rules are a bit complicated, but we can break them down as follows:
- Most people get paid every 14 days.
- The payments received depend on Walmart's internal payment cycle.
- If your account is less than 90 days old, it will take a little longer to receive payment. Every item you sell takes a minimum of 28 days, not 14. Think of it as a trial period.
- Payments received on Friday after midnight PST will be billed in the following payment cycle. In other words, this is the cycle shutdown.
- Walmart books on Tuesdays.
Refunds will be deducted from your payments as soon as they are processed. You can view your transaction history by checking the Payments section in the Seller Center.
6. Keep your Walmart Marketplace account compliant
Walmart values the quality of the providers. Here are some tips to keep in mind.
- Do not list prohibited products.
- Execute orders on time.
- Keep your inventory up to date to avoid disappointed customers.
- Make sure your products match the descriptions and do not ship faulty items.
The final result? Maintain high standards of customer service, keep your records correct, and don't take more orders than you can handle.
Now we've explored the inner workings of the Walmart marketplace. There is only one thing left to do: apply to join the platform!
Make sure you optimize your offers with the right keywords and the best prices before you start. You can find more help with your marketing and analysis in my consulting services.
Remember, you have to impress the marketplace before signing up. So it makes sense to lay some basics first.
Have you tried the Walmart Marketplace? How does it work for you